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Microsimulation

Microsimulation

» TÁRSZIM: Hungarian tax – benefit microsimulation model

The microsimulation procedure examines social and economic changes by assessing the effect of each provision by small units – in our case, households – and the description of the overall effects is derived from these. The relevance of the results for the society as a whole is ensured by the database being a national representative sample of the units or households of such size that guarantees the required statistical reliability. Naturally, the range of social and economic changes that can be modelled this way is defined by the information available on the microsimulation units in the database. In addition to the generally used social and demographic variables the microsimulation database contains detailed information on households related to five areas: income, consumption, taxation, participation in various social transfers and job market position.

» A Tax-benefit Microsimulation Model for Hungary

Paper prepared for the Workshop on Microsimulation in the New Millennium: Challenges and Innovations (22-23 August 1998, Cambridge).

This study was prepared with support of the PHARE-ACE Programme grant No. P96-6014-R “Household Welfare and Behaviour during Transition in Bulgaria, Hungary and Poland”


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